Yum! Brands (Louisville, Ky.), which operates KFC and Pizza Hut, opened its largest distribution center in China to increase control over its local supply chain, the Shanghai Daily reported in late November. In other overseas markets, the company relies on outsourced logistics services, but it is keen to expand in China and has built its own distribution centers there.
"We desire to grow in so many places in China but the capability doesn't really exist in China to provide the services we need,” said Todd Nelson, who manages logistics in China for the company.
Yum! is China's biggest restaurant chain operator with over 1,700 KFC and Pizza Huts and has opened about 300 new stores annually over the last few years. The new center in the western Taopu area of Shanghai will serve Shanghai and neighboring cities, with an annual distribution capacity of over 5 million boxes. The company plans to build or upgrade distribution centers in five more locations in Guangzhou, Nanjing and Wuhan, among others, in the coming 18 months.
Source: Shanghai Daily.